Auto Insurance Back On Agenda

Committee Approves Bill To Make It Mandatory

April 24, 1985|By Daniel Egler and Tim Franklin, Chicago Tribune.

SPRINGFIELD — The 15-year-old debate over mandatory automobile insurance was revived in the Illinois legislature Tuesday as the House Insurance Committee narrowly approved a bill requiring that a motorist list the name of his insurance company on his license plate application and carry proof of insurance.

``I think it is reasonable to expect anyone operating a motor vehicle in this state to at least carry liability insurance,`` Secretary of State Jim Edgar told the committee.

Under terms of the bill, each driver would be asked to certify that his vehicle is insured when applying for license plates, and the driver would be required to carry a card issued by the insurance company. Edgar`s office would have the authority to monitor compliance with the law by verifying random samples of the registrations.

Officials estimate that 16 percent of the 5.4 million vehicles in Illinois, or 864,616, are not covered by insurance and that in Chicago, 30 percent of the vehicles are uninsured.

Despite the endorsements of Edgar and Gov. James Thompson, the bill was approved by the committee only after Rep. John Vitek (D., Chicago) expressed reluctance but voted for it to allow it to be considered by the entire House. The House has approved mandatory insurance legislation for the last two years, but the Senate has killed it.

The bill was supported by the Independent Insurance Agents of Illinois which had opposed it last year. It was still opposed, however, by the larger insurance companies, such as State Farm and Allstate, which argued that compulsory insurance had not signifigantly lowered the uninsured motorist rates in the 33 states that already have enacted similar laws.

Meanwhile, a motorist ticketed for speeding would not have the violation recorded against his driving record if he was driving 65 miles an hour or lower on roads that have a 55 m.p.h. limit, under a bill unanimously passed by the Senate Transportation Committee.

Under current law, a motorist receiving three speeding violations within a year faces automatic suspension of the driver`s license.

Sen. William O`Daniel (D., Mt. Vernon), sponsor of the bill, denied suggestions that the law would lead to blatant disregard of the 55 m.p.h. speed limit.

O`Daniel said the measure is designed in part to help business people and also may save drivers from paying more in insurance premiums. Many insurance companies raise the premiums of drivers caught speeding, he said.

Passage of the measure should not threaten the state`s receipt of federal highway dollars, O`Daniel said. Any state raising the nationally prescribed 55 m.p.h. speed limit would face loss of federal highway funds.

The Senate Transportation Committee also rejected a bill that would have required a motorist to pay for his own auto emission inspection. The inspections are to begin this fall in parts of the Chicago and East St. Louis areas. The inspection program is to be funded from the state`s motor fuel tax.